How to leverage your local knowledge

Borrowing a page from my colleague Mike Stevens’ handbook, let’s take a look at ways you can customize high-volume products right before shipment.
The main thing this requires is tight communication with your customers. This doesn’t mean getting a quarterly forecast from them, it means receiving demand information from them as frequently as possible. It also requires that they have a good grasp on the end market. Theoretically, this should be a no-brainer for small businesses, which frequently serve local markets and/or are highly specialized.
Here’s a big-company example that will also work for small business. It’s been on my mind because I live seven miles from Gillette Stadium in Foxboro, Mass., and –if you haven’t already heard– the New England Patriots are playing in the Super Bowl. When the Pats win, the Pro Shop at Gillette will be a mob scene as fans flock to buy Bowl-wear first thing Monday morning.
We had a similar situation when the Red Sox won the World Series. Even though apparel manufacturers Majestic Athletic and Reebok manufacture a lot of products overseas, Majestic, in the Red Sox case, had Boston- and Denver-area printers on standby during the last game of the Series. The printers had piles of colored-t-shirts and sweatshirts on hand, as well as both teams’ Series-winner logos. Seconds after the last pitch, Sox apparel was in production.Here’s why this was a win-win for small businesses:
• If those piles of t-shirts didn’t use the Sox logo, they could easily be used for the local Little League. There’s no unusable excess inventory. If you have the space, keep materials on hand.
• The risk of getting stuck with excess customized product was low. The customization was taking place at the last possible minute in the market where the demand materialized. Push customization as far down the production line as you can.
• The big manufacturers relied on the local shops for demand information. This was a huge value for Majestic. Local vendors reported to Majestic that a win by the Sox could generate demand for weeks after the Series. In New York, by contrast, World Series wins prompt a two-day spike. Armed with information that demand for Sox-wear would continue, Majestic could tap their overseas factories for ongoing demand.
I haven’t heard yet how Reebok, a supplier of Pats apparel, will meet demand. I don’t think anybody in Massachusetts has gotten so accustomed to championships that Monday will be just another day at the Pro Shop.